An option agreement provides the developer with the ability to spend time and resources on gaining a planning permission for development on either a fixed price or percentage of open market value basis. Typically a fee will be paid by the developer and a fixed amount of time is then given to gain a planning permission upon receipt of which the seller receives the value of the land.

Under an Option Agreement, the land owner typically gives a developer the right to buy the land, either at a fixed price or by reference to a formula (such as a percentage of market value). The developer will usually take on various obligations (such as to pursue planning permission) and may pay an option fee.

A land promotion agreement for use where a developer or land promoter agrees to: Apply for planning permission for a development on a landowner’s property. Market the property for sale on the open market once planning permission has been obtained.

A Promotion Agreement may contain similar obligations (such as to pursue planning permission), but does not give the developer the right to buy the land. Instead, the developer would be entitled to a percentage of the sale proceeds as and when the land is sold.

Whether you are an established house-builder a developer wishing to grow your business or an investor seeking qualified opportunities PLP can advise and assist in the delivery of qualified opportunities across the Central Region and beyond.